Elementia Obtains New Credit Loan and Concludes its Refinancing Program

  • The Company obtained a loan for Ps. 925 million at TIIE plus 130 basis points, for a 7-year term and quarterly payments, with a 2-year grace period
  • This transaction concludes Elementia’s strategy to strengthen its financial position as announced by year-end 2016; proceeds will be used to prepay the existing syndicated loan

MEXICO CITY--()--Elementia, S.A.B. de C.V. (BMV: ELEMENT*) (“the Company” or “Elementia”), announced today that as part of its strategy to strengthen its balance sheet and maintain its profitable growth, it obtained a loan for Ps. 925 million at a 7-year term, with payments beginning in the first half of 2020, given its 2-year grace period. Citi Banamex was the participating bank in this transaction.

The obtainment of this loan successfully concludes the Company’s commitment, as announced in 2016, of exchanging short-term for long-term debt during 2017. The proceeds will be used to prepay 100% of the syndicated loan, which was used as bridge to finance the acquisition of the 55% controlling stake in Giant Cement in the U.S. During 2017, the Company refinanced US$ 350 million, releasing approximately US$ 200 million in cash flow in 2017 and 2018.

The effort carried out to exchange short for long-term debt is evidence of management’s commitment with the investor community, as well as the confidence in the Company by various banking institutions.

Once again, Elementia reaffirms its commitment to maintain manageable and conservative leverage levels to achieve its target Net Debt/EBITDA ratio of close to 2.0 times.

About Elementia

Elementia is a major manufacturer of semi-finished copper, alloy, fiber cement, cement, and plastic products offering innovative constructive solutions that redefine the concept of constructive evolution. Our state-of-the-art rotomolding technology, Eureka®, preserves the most important resource we have: water; which runs through our Nacobre® pipe systems. In addition, more than 65 years of experience of our Nacobre® brand, allows gas installations to be used in a safely manner. Elementia has grown organically, and through strategic mergers and acquisitions, creating an integrated platform of more than 4,000 products. Through Cementos Fortaleza®, and the strategic acquisitions of Giant®, Keystone® and Dragon® cement, we give structure to foundations, columns, floors and ceilings of houses, shopping malls, offices, hospitals, etc., both in Mexico and the U.S. Elementia has more than 6,000 employees, operating presence in nine countries and a wide distribution network. Innovative and versatile panels manufactured by Allura®, Plycem®, Eternit®, Duralit® and Fibraforte®, offer fiber cement technology advantages in decorative façades, wooden simulation decks, traditional roof tiles and state-of-the-art ceilings. Elementia is the largest fiber cement producer in Latin America and second largest player in the U.S.

Contacts

Investor Relations
Elementia
Ana Lourdes Benavides, +52 55 5728-5467
abenavidese@elementia.com

Contacts

Investor Relations
Elementia
Ana Lourdes Benavides, +52 55 5728-5467
abenavidese@elementia.com